2. Chart of Accounts: It's used to represent
company's Financial information.
There are two types of accounts:
Balance Sheet.
Profit and Loss Statement accounts.
3. Balance Sheet consists of :
Assets: Bank and Cash balances, outstanding amounts of
customers and all other assets are recorded here.
Liabilities: All the company's liabilities like shareholder's
capital, outstanding amount to be paid to suppliers, taxes to
be paid.
4. Profit and Loss statement accounts
consists of:
Incomes: Income from direct/indirect sales.
Expenses: All the expenses to run the business, like salaries,
purchases, rent etc. are recorded here.
5. Payment
Payment can be made against the following
transaction :
Sales invoice
purchase invoice
sales order (Advanced payment )
purchase order (Advanced payment )
6. In ERPNext there are two
options to capture the
payment
payment entry (Default )
Journal entry
7. Payment entry
Payment entry can be made against the following transaction
Sales Invoice.
Purchase Invoice.
Sales Order (Advance Payment).
Purchase Order (Advance Payment).
Expense Claim.
8. You capture the payment using payment entry
option by the following process :
you make the payment by pressing make the payment button.
you select the mode of payment in the payment master ( for
example: Bank, Cash, Wire Transfer)
you Enter actual payment amount received from the Customer
or paid to the Supplier or Employee
Allocate Amount of payment :
-For customer it will be sales invoice.
-For suppliers it will be purchase invoice.
9. You capture the payment using payment entry
option by the following process :
When making payment entry, there could be some difference
in the actual payment amount and the invoice outstanding
resulting from rounding error or change in the currency
exchange rate. You can set an Account here where this
difference amount will be booked.
You save and submit the payment entry.
Note: after the submission the invoices will be updated if it's
sales order, advanced paid will be updated in case of
advanced payment.
10. For incoming payment, it will be Debit(Bank or Cash Account) or
Credit( Customer)
and
For outgoing payment it will be Debit (Supplier), or Credit (Bank
or Cash Account)
11. Multi Currency Payment Entry
ERPNext allows you maintain accounts and invoicing in the
multiple currency. So currency exchange rate should be entered
in the invoice and when making payment entry again you should
mention the currency exchange rate other wise there will be
some differences in the amount.
Internal Intransfer
can be managed from the Payment Entry (Bank - Cash, Cash -
Bank, Cash - Cash, Bank - Bank).
12. Conclusion:
ERPNext allows you to manage all billing and payment
scenarios. All accounting entries can be made against a Sales
Invoice, Purchase Invoice or Payment Entry of advance payment.
